Investing in French Overseas Companies: A Bad Deal? The Liquidation Processes of Companies Operating on the West Coast of Africa and in India (1664–1719)

Abstract

Although French chartered companies operating on the west coast of Africa and in India followed a similar model of organization, their liquidation processes differed depending of the area of their monopoly. As well as exploring the reasons for the distinction between these two regions of exclusive trade, this article demonstrates that the differing liquidation processes negatively impacted company shareholders in the two regions. Taking the perspective of shareholders farther, it explores the case of a specific investor and the informal economic profits he benefitted from. This approach contributes to deepening our understanding of the French early modern companies’ bankruptcies by examining informal aspects that would not be readily visible from an exclusively institutional point of view.

Jean Richer na Guiana francesa (1672-1673)

“…Quando Richer estava em Caiena, ele descobriu às suas custas que a Companhia não era mais capaz de cumprir sua missão (Richer, 1679b): não rendia, a Guiana não era uma prioridade, a insatisfação da população crescia. Em 1674, com apenas dez anos de existência, o rei dissolveu a empresa falida 7 e reembolsou dívidas colossais (Heijmans, 2019). Foi, portanto, durante um período muito breve de estabilidade, mas em condições materiais difíceis, que Richer permaneceu em Caiena de abril de 1672 a maio de 1673.…”

Company-states and the creation of the global international system

“…In short order, every single one of these guarantees was violated. The French companies were such an unattractive investment prospect that nobles who were assessed fines were able to discharge their penalty by buying shares instead (Heijmans, 2019: 109–111).…”